Bearish conditions in palm oil market set to continue – analyst

KUALA LUMPUR (ICIS)--“Short-term pain has to be borne for long-term gain,” said Dorab Mistry at the Palm and Lauric Oils Conference and Exhibition Price Outlook (POC) on Wednesday.

Delivering his price outlook for 2013, the director of India-based oleochemical manufacturer Godrej told delegates at the conference in Kuala Lumpur that the bearish market conditions could worsen as a result of greater palm oil supplies.

Mistry estimated Malaysian crude palm oil production in 2013 will be 19.5-19.7m tonnes, while Indonesia’s production could top 30.5m.

As a result, Mistry expects palm oil prices on the Bursa Malaysia Derivatives to slide to Malaysian ringgit (M$) 2,200/tonne ($710/tonne, €543/tonne) in April. This could decline further as a result of increased palm oil output in July and August.